Home Business Campos Neto: Central Bank Autonomy Project Has Not Undergone Major Changes

Campos Neto: Central Bank Autonomy Project Has Not Undergone Major Changes

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Roberto Campos Neto, President of the Central Bank, commented on Thursday, 28, that the project of autonomy of the BC that is processed in the National Congress suffered only minor changes after his arrival in the institution.

“In our opinion, the project is good and depends on the procedure in the Legislative, we understand that it is a very important project for Brazil,” he replied.

Bank spread

The president of the Central Bank has again said that he is not “happy” with the banking spreads practiced in the Brazilian credit market. “We think it’s loud,” he replied.

He went on to say that he has been bending over market imperfections that lead Brazilian banks to spreads above the average in other countries. “We have to do a huge job on the credit recovery part,” he repeated, stressing that the BC has been working to push forward the credit guarantee.

According to him, the operational cost of Brazilian institutions is also another factor weighing on the price of credit.

The president of the BC also claimed that the profit of Brazilian banks is 15% on average, while in other countries the profitability of the sector reaches 22%. “The profit on the spread in Brazil is not higher than in other countries, but the spread here is higher,” he said.

According to him, the Director of Organization of the Financial System of the Central Bank, Joao Manoel de Pinho, will work on this issue on banking competition.